At MLMLegal.com, we are continuously working on a project of maintaining over 700 MLM, direct selling, network marketing, party plan company profiles and keeping them accurate and up-to-date. Our unbiased MLM company profiles offer summary information about each company’s founding story, its impact on the MLM industry, products, compensation plan, as well as its growth and sales volume figures.

Over 700 MLM Company Profiles

Please welcome ten new MLM company profiles to MLMLegal.com.

In addition, we work tirelessly to add new MLM companies as they launch into the U.S. and global marketplace. We hope that the simplified MLM company profiles help to provide readers with quick information about individual companies without requiring readers to have to wade through each company’s, sometimes complex, websites and compensation plans/opportunities.

Please welcome ten new MLM company profiles to MLMLegal.com:

SnackHealthy
LydiaStyle
Beauty Society
Rastelli Foods Group – Rastelli Direct
NYR Organic US
YouDazzle
Xplocial
Frezzor, Inc.
Solavei
Nutrazon International, Inc.

Continue reading »

This blog post is the companion post to the video: Success Stories in the MLM, Direct Selling, Network Marketing Industry, in which MLM Attorney, Jeffrey Babener, discusses the successes of leaders in the direct selling industry.

There have been many studies done in regards to what makes successful direct selling companies. Many case studies have been done about Mary Kay and her leadership, which have been cited at schools like the Harvard Business School and the Wharton Business School. Many schools have lectured on the institution of direct selling. Many people have added business modules on entrepreneurship in an effort to understand what it is about these renegade, visionary and charismatic individuals that cause people to flock to them, follow them and build this type of business for themselves.

Continue reading »

The the March issue of The World of Direct Selling‘s newletter, the editors asked, “‘Do you think the direct selling industry has an image problem that needs to be worked on? What makes you think that way?’ was the question we asked some of the experts.” MLM industry expert, Jeff Babener, provided his two cents, as shown below:

Jeffrey Babener, Legal Counsel at Babener and Associates

“Short term answer: Absolutely. However, as noted by famed Univ. of Chicago economist, Milton Friedman, the future is longer than the present. In the current financial markets furor of hedge fund titans bashing direct selling, with the financial press piling on, a slightly dejected industry should take note that in the ‘big picture,’ it actually isn’t doing so bad at winning the ‘hearts and minds’ of consumers and potential recruits. With some blips, long term image trends are good. In the past two decades, just witness direct selling’s extraordinary international expansion, its emergence on the NYSE and as acquisition target by NYSE companies.”

Continue reading »

This blog post is the companion post to the video: Why Do Distributors join MLM Companies? The following is the transcript of MLM Attorney Jeff Babener’s own words:

A common question we get is “why do people join direct selling and network marketing companies?”  Many studies have shown that recruitment is essential to success, particularly studies done by the Direct Selling Association. Many would be surprised at the results. One may think that most people join MLM companies for the money. However, believe it or not, money as motivation ranks as four, five and six on polls.

The polls have showed that the number one reason why people join MLM companies is because they relate to the product. The second reason they join is because they relate to company management; the person who founded the company. The third reason distributors join is because they relate to the company vision. If the company proclaims women’s empowerment or wellness, then distributors will relate to that as well. It is also important that distributors relate to the field leadership and the people that brought them into the company.

Continue reading »

This blog post is the companion post to the video: Why Do Distributors Stay with MLM Companies? Find out how to retain the most important asset to your MLM company, distributors.

We are often asked the questions “why do people stay with MLM companies” and “why do they leave?” Retention is essential for a successful MLM company. We are in an industry that has a lot of attrition due to the nature of the work environment. Many distributors work part time and are competing for peoples’ time. Distributors (or representatives, consultants, etc.) come and go all the time. Losing a distributor is worse than being unable able to recruit new consultants, making retention essential.

There are interesting answers given by distributors as to why they stay with the company. You may think they stay for the earnings, but income often comes in fifth or sixth place in industry polls. As a general matter, consultants usually stay with a MLM company because they are connected and bonded with the products the company sells, as well as with the company’s mission and with top management/leadership. Distributors also like to be recognized for the work that they do. Recognition is very important in the direct selling industry. These are factors that really propel distributors to stay with a MLM company.

Continue reading »

This blog post is the companion post to the video: Why Choose the MLM Model for Your Business? – A CEO Interview. Find out what makes MLM, direct selling, network marketing, and party plan business plans desirable to so many CEO and executives.

Babener: It’s my pleasure to be speaking with Kris Krohn, he is one of the Founders of Strongbrook (REIC). When www.mlmlegal.com sponsors conferences in Las Vegas, we often have the CEOs of companies attend because it’s important to know what makes MLM companies great. And, of course, my observation is that nobody starts on top.

Kris: That’s right. Everybody starts at the bottom.

Babener: I’m curious, Kris. Tell me about Strongbrook, tell me about its origins, tell me about the triumphs and difficulties you had in creating this company.

Kris: I appreciate that, Jeff. I’ll tell you, Strongbrook is five years in the making. And, in fact, I can tell you that for the first four years we kept tweaking our formula because we have a very complicated product that produces amazing transformations for people who leverage and use it. And, it took a long time to really dial that in. It came down to very humble beginnings where we started with absolutely nothing. We were encouraged to keep formulating our product in helping people achieve success through real estate investment with the feedback we would get from our clients.

Then we would bring them more clients. And then we would tweak our program so more. And then we’d figure out how to help them successfully purchase more real estate. We learned along the way things like sleep-well-at-night accounts. There’s a certain amount of money that people want to have in bank accounts to feel comfortable. And really, it comes down to an amazing team and culture here at Strongbrook; where everyone works together very, very well. We have a culture of being very hardworking and putting the client first. That is a really short answer for our history over the last four years. It was about a year ago when we finally said, “You know? With this product we have helped over 1,000 people experience some pretty powerful principles, concepts and even financial changes. It has been a major influence in their lives and created some very positive changes.” We decided that we were not going to tweak our formula anymore.

Continue reading »

This blog post is the companion post to the video: Short Course on Network Marketing: Q&A with Jeffrey Babener on Pyramid Schemes. Expert MLM Attorney, Jeff Babener, answers the question, when it comes to pyramid schemes, how do you tell the difference between one that’s legitimate and one that is not? How do compensation plans affect a company’s legality?

Jeff Babener: There’s a famous Supreme Court decision that where one of the Supreme Court judges was asked to comment on the definition of pornography. He replied that he couldn’t define it, but he knew it when he saw it.  Sometimes you need a metaphor to understand the difference between an illegal pyramid, headhunting, recruitment scheme and a legitimate MLM company.

This story is a good example of the difficulty in defining pyramid schemes. And, you may come to your own conclusion. Here is a metaphor that I use a lot to help people with the definition of pyramid schemes:

The metaphor is about a gentlemen, will call him Party #1, and he sells a case of canned tuna fish to Party #2 for $10. And, Party #2 sells it to Party #3 for $20, and Party #3 sells the case of canned tuna fish until it gets to Party #10, who buys the case of canned tuna for $500. And, Party #10 opens up the case of tuna fish and it’s rancid. It’s inedible.

He goes back to Party #9 and complains, “I bought this case of tuna for $500 and it’s rancid.” Party #9 tells him to take it to Party #8, and Party #8 tells him to take it to Party #7, and so on until Party #10 goes all the way back to Party #1 and says, “You’re the one who started all of this! I have a problem!”

Continue reading »